Question

tml Help Save & Exlt Submit 2 e of rmu materials 290,000 s 100.000 s 285,000o 270,000 nInventory balances at the beginning and end of the year were as follows of rear tad。E Year s 40,000 10,000 2 35,000 Hork in process goods s 50,000 The total manufacturing costs for the year were $683,000; the cost of goods available for sale of goods sold totaled $660,000; and the net operating income was $30,000. The company's underapplied or totaled $740.000; the unadjusted cost Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement. (Hint Prepare of goods sold first the schedule of cost of goods manufactured.) Prey 2 of 3EENext: > MacBook Air

Answer 1

Superior Company
Income Statement
Sales revenue		915000
Cost of goods sold		645000
Gross profit		270000
Selling and administrative expenses:
Selling expenses	140000
Administrative expenses	100000
		240000
Net operating income		30000

Superior Company
Schedule of Cost of Goods Sold
Cost of goods manufactured	690000
Add: Beginning finished goods inventory	50000
Cost of goods available for sale	740000
Less: Ending finished goods inventory	80000
Unadjusted cost of goods sold	660000
Less: Overapplied manufacturing overhead (285000 - 270000)	15000
Adjusted cost of goods sold	645000

Superior Company
Schedule of Cost of Goods Manufactured
Direct materials:
Beginning raw materials inventory	40000
Add: Purchases of raw materials	290000
Total raw materials available	330000
Less: Ending raw materials inventory	10000
Raw materials used in production		320000
Direct labor		78000
Manufacturing overheads		285000
Total manufacturing costs for the year		683000
Add: Beginning work in process inventory		42000
Total work in process		725000
Less: Ending work in process inventory		35000
Cost of goods manufactured		690000

Working:

A	B	C	D
	Superior Company
	Income Statement
4	Sales revenue		=D5+D6
5	Cost of goods sold		645000
6	Gross profit		=D11+D12
7	Selling and administrative expenses:
8	Selling expenses	140000
9	Administrative expenses	100000
10
11			=SUM(C8:C10)
12	Net operating income		30000
	Superior Company
	Schedule of Cost of Goods Sold
16	Cost of goods manufactured	=C18-C17
17	Add: Beginning finished goods inventory	50000
18	Cost of goods available for sale	740000
19	Less: Ending finished goods inventory	=C18-C20
20	Unadjusted cost of goods sold	660000
21	Less: Overapplied manufacturing overhead (285000 - 270000)	=285000-270000
22	Adjusted cost of goods sold	=C20-C21
	Superior Company
	Schedule of Cost of Goods Manufactured
	Direct materials:
27	Beginning raw materials inventory	40000
28	Add: Purchases of raw materials	290000
29	Total raw materials available	=C27+C28
30	Less: Ending raw materials inventory	10000
31	Raw materials used in production		=C29-C30
32	Direct labor		=D34-D31-D33
33	Manufacturing overheads		285000
34	Total manufacturing costs for the year		683000
35	Add: Beginning work in process inventory		=D36-D34
36	Total work in process		=D38+D37
37	Less: Ending work in process inventory		35000
38	Cost of goods manufactured		690000